Are Smart Investors Making the Right Decision? Canadian Imperial Bank of Commerce (CM)

Canadian Imperial Bank of Commerce (NYSE: CM) stock fell -0.73% on Friday to $46.07 against a previous-day closing price of $46.41. With 1.95 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.82 million shares. During the session, the Banks – Diversified company that operates in wider Financial sector, reached to the highest price of $46.69 whereas the lowest price it dropped to was $45.86. The 52-week range on CM shows that it touched its highest point at $66.24 and its lowest point at $45.09 during that stretch. It currently has a 1-year price target of $56.46. With its current market cap of 42.49 billion, CM has annualized dividend of $2.57 while the current yield stands at 5.58%. Beta for the stock currently stands at 1.02.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CM was down-trending over the past week, with a drop of -4.99%, but this was down by -10.40% over a month. Three-month performance dropped to -3.98% while six-month performance fell -27.21%. The stock lost -18.16% in the past year, while it has lost -20.95% so far this year. A look at the trailing 12-month EPS for CM yields 5.26 with Next year EPS estimates of 7.58. For the next quarter, that number is 1.79. This implies an EPS growth rate of 69.40% for this year and 1.79% for next year. EPS is expected to grow by 4.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.40%.

Float and Shares Shorts:

At present, 903.74 million CM shares are outstanding with a float of 901.44 million shares on hand for trading. On Jul 14, 2022, short shares totaled 22.9 million, which was 2.53% higher than short shares on Jun 14, 2022. In addition to Mr. Victor G. Dodig as the firm’s Pres, CEO & Director, Mr. Hratch Panossian serves as its Sr. EVP, CFO and Head of Enterprise Strategy.

Institutional Ownership:

Through their ownership of 53.37% of CM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 28.05% of CM, in contrast to 19.84% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CM with 5.62% of the stake, RBC Global Asset Management, Inc. holds 50,709,004 shares worth 50,709,004. A second-largest stockholder of CM, TD Asset Management, Inc., holds 42,866,389 shares, controlling over 4.75% of the firm’s shares. 1832 Asset Management LP is the third largest shareholder in CM, holding 38,809,097 shares or 4.30% stake. With a 1.29% stake in CM, the Vanguard Total International Stoc is the largest stakeholder. A total of 11,605,650 shares are owned by the mutual fund manager. The RBC Canadian Dividend Fund, which owns about 0.99% of CM stock, is the second-largest Mutual Fund holder. It holds 8,919,071 shares valued at 421.96 million. TD Dividend Growth Fund holds 0.91% of the stake in CM, owning 8,219,895 shares worth 388.88 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CM since 6 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CM analysts setting a high price target of $83.00 and a low target of $56.00, the average target price over the next 12 months is $65.42. Based on these targets, CM could surge 80.16% to reach the target high and rise by 21.55% to reach the target low. Reaching the average price target will result in a growth of 42.0% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CM will report FY 2022 earnings on 12/01/2022. Analysts have provided yearly estimates in a range of $5.77 being high and $5.62 being low. For CM, this leads to a yearly average estimate of $5.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Canadian Imperial Bank of Commerce surprised analysts by $0.01 when it reported $1.43 EPS against a consensus estimate of $1.42. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $1.40 and the low estimate is $1.34. The average estimate for the next quarter is thus $1.37.

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